1 no-brainer Canadian stocks to buy and hold forever

Investing in high-quality mining companies provides diversification and exposure to commodities such as gold, silver, nickel and copper, reducing overall portfolio risk. With gold and silver prices gaining momentum over the past two years, several TSX mining stocks have already delivered outsized returns for shareholders.

An example of such a TSX stock is First majestic silver (TSX:AG), up more than 80% in the past twelve months. First Majestic Silver, valued at a market cap of $8 billion, is also down 24% from its 52-week high, giving you a chance to buy the dip.

First Majestic Silver is a Canadian mining company that acquires, explores, develops and produces silver and gold from mineral properties in Mexico. It operates three primary mines: San Dimas in Durango, Santa Elena in Sonora and La Encantada in Coahuila, with a focus on the mining and production of precious metals in North America.

Silver could be an attractive investment over the next decade, driven by powerful structural trends. Industrial demand is accelerating rapidly as silver proves essential for solar panels, electric vehicles, 5G networks and AI hardware. The transition to green energy will also increase consumption, with photovoltaic installations reaching record levels and requiring more silver per panel to increase efficiency.

Alternatively, global silver markets are facing supply shortages as mine production struggles to keep pace and may even decline due to maturing ore bodies and regulatory hurdles. Because silver is mined primarily as a byproduct of base metals, supply cannot easily respond to rising prices, potentially amplifying upward price movements.

Analysts expect silver could rise from around US$48 per ounce in 2025 to US$99 by 2031 and US$150, making First Majestic a top investment right now.

Is this TSX silver mining stock a good buy?

First Majestic Silver delivered its strongest quarter in the company’s history with record revenues of $268 million, up 94% year-over-year, putting the miner on track for annual revenues of approximately $1 billion by 2025.

The Canadian silver producer reported silver production of 3.7 million ounces, up 76% year-on-year, while silver equivalent production rose 48% to 7.9 million ounces.

First Majestic generated record EBITDA (earnings before interest, taxes, depreciation and amortization) of $120 million and strong operating cash flows of $115 million during the quarter. It also ended the second quarter with $510 million in cash, giving it near-term financial flexibility to invest in organic growth and acquisitions.

First Majestic is working to consistently maintain a throughput of 4,000 tons per day at Gatos by accelerating underground development to better align mine capacity with plant capacity. In Santa Elena, recent discoveries at Navidad, Santo Niño and Winter show promising results larger than the original Ermitaño deposit, with Navidad alone containing an initial estimate of 30 million ounces.

First Majestic maintains production guidance of 30 to 32 million silver equivalent ounces by 2025, while ramping up exploration with planned drilling of 255,000 meters on 20 active platforms.

The company continues to pay dividends at a rate of 1% of sales, which increases as sales grow. Management remains the purest silver producer among its peers, with a silver content of 55%, compared to competitors’ silver content ranging from 24% to 44%.

What is the price target for the TSX miner?

Analysts who follow First Majestic stock predict that revenue will increase from $797.44 million in 2024 to $2.2 billion in 2027. During this period, free cash flow is expected to grow from $52.3 million to $885 million.

If the TSX stock is priced at 12 times forward earnings, it could rise more than 30% within the next 15 months. Analysts remain optimistic and expect the TSX stock to rise about 40% over the next twelve months, based on consensus price targets.